Oglebay Norton shareholders ask for official equity holders committee

By Jeff Pines

Washington, March 24 - A group of Oglebay Norton shareholders believes the company needs an official equity holders committee. They asked the U.S. trustee to appoint one earlier this month, but the U.S. trustee has not made a decision yet

On March 24, the group filed a motion requesting the U.S. Bankruptcy Court for the District of Delaware to take action.

As an unofficial group, the shareholders objected to the company's first motion for Chapter 11 debtor-in-possession financing because they believed the filing lacked important information they needed to evaluate whether the terms were necessary and appropriate. They also objected to what they said are "excessive fees."

They also objected to the company's second motion for financing because they were concerned about excessive fees, the company taking on more post-petition debt, giving the lender veto power over any reorganization plan, the timing and not having the explanations and information they needed.

The equity holders also have concerns about two Oglebay Norton directors who are or were directors of KeyBank NA, which is the agent for the company's pre-petition credit facility.

A hearing on whether equity holders need official representation is scheduled for April 7.

Olgebay Norton filed for bankruptcy on Feb. 23. Its Chapter 11 case number is 04-10558.

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